Sunday, November 25, 2012

Laclede Group Inc. dividend machine for Nov. 26, 2012

I hope you all had an enjoyable
Thanksgiving holiday. While I always
look for opportunities like covered calls when the market is open, I don’t
always have to buy, sell or trade every week.
I took this week’s low volume market as a chance to relax; but my
dividend machine project continues with five more dividend machines expected in
2012.

This week, the first company I found is another new
one for me. Laclede Group, Inc. is a gas
utility in Missouri. They have a strong
history of paying dividends and even provided some stock splits. The dividend has been increased every year
for the past eight years and the company has worked on adding more “non-regulated”
utility activity to hopefully provide more growth in the future. For income investors, more growth of the
company should provide more growth of our dividend income.

If you own LG by December 7, 2012,
you will receive the quarterly dividend of $.425 on January 3, 2013. This is an annual dividend of $1.70; at the
closing price of $39.01 on Friday 11/23/2012, the yield is 4.3%. During the past four quarters, EPS (earnings
per share) were $2.79 and dividends paid were $1.66. D/E is within reason at 1.31 and income has
increased consistently for the past eight years.

The table below presents LG’s
dividend machine values.

DIVIDEND MACHINE

11/26/2012

Laclede Group

LG

Price when profiled

$39.01

Last 4 Qtrs Earnings

$1.79

Last 4 Qtrs Dividends

$1.66

Current Qtr Dividend

$0.43

Annualized Div Yield

4.36%

No. Years Div Increase

8

Debt/Equity ratio

1.31%

Income
investors who like defensive industries with safe dividend income, might
consider LG for their portfolios.

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Covered Call Opportunities

Square, symbol SQ, is my current favorite stock that is not a dividend machine. To turn it into an income investment, I use SQ's volatiity to buy when it dips and sell calls. See the table above. Note that this call is not included in the post published on 12/12/18 M*

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TheMoneyMadam's Story

My income investing success came from my experience managing my and other people's money since 1993. Successful income investing requires discipline. In this blog I provide specific investments based on my principles of conservative income investing. I hope to help the thousands or even millions of people who have saved and want to invest their nest eggs to retire with income that grows. M* MoneyMadam

Disclaimer

Information on this blog does not constitute investment advice. Review or mention of any stock, bond, or other investment shall not be considered a buy or sell recommendation. Everything in this blog is the opinion of the author and no warranties are expressed or implied. M*MoneyMadam.